Managing Partners Size Up UAA

By Danielle D'Angelo

In a continuing effort to solicit input from the membership about the Uniform Accountancy Act, NYSSCPA President George Foundotos met with the managing partners from large local and regional accounting firms across the state to gain more feedback on specific UAA provisions.

Participants also discussed the recent letter issued to all practicing CPAs by the State Education Department regarding the merger of Goldstein Golub Kessler & Co. with American Express Tax and Business Services. This letter outlined the SED's views on forms in which CPA firms can practice and rules of operation for subsidiary companies. (See nysscpa.org for the complete text of the letter.)

"The state's letter is a wake-up call not so much because of what it says but more because it underscores the need for change in New York's accountancy law," said NYSSCPA Executive Director Louis Grumet. "We need to clean up some of the vagueness of the current law to continue to protect the public and also allow CPAs to better meet the demands of today's competitive marketplace. The UAA achieves both these goals."

The UAA is a model bill and set of regulations jointly proposed by the American Institute of CPAs and the National Association of State Boards of Accountancy, and it presents major changes to current laws and regulation. President Foundotos summarized many of the UAA's key points, including: substantial equivalency which provides more flexibility for CPAs to practice across state lines, a one-year experience requirement, non-CPA ownership of firms, the acceptance of commissions, CPE requisites, mandated peer review for attest services, and the CPA=CPA provision which permits all individuals to use the CPA title (even those not in public accounting) provided they meet all the profession's licensing requirements.

"We need to move on this bill in New York now so we have a voice in the process," said Foundotos. "If we don't act to protect our interests and those of the public we serve, others will act for us."

The partners at the meeting discussed and took a straw vote on each of the provisions. In general, attendees demonstrated support for the UAA but most took issue with the one-year experience requirement, favoring two years instead.

The other issue which provoked much discussion was accepted forms of practice for CPA firms. The UAA allows non-CPAs to own up to 49% of a public accounting firm.

"We need to have this kind of flexibility in order to achieve our goals in today's marketplace," said Bennie Hadnott, a partner with Watson Rice LLP.

Others in the audience echoed Hadnott's views. And, in an earlier discussion about subsidiary arrangements that many firms now have in place, some suggested that CPAs should be allowed to practice in publicly-owned companies. Foundotos shared the feedback from this meeting--along with additional comments from chapters, committees, and members at large--with the Society's Board of Directors on October 6, when the board was scheduled to vote on the UAA provisions. A complete report of the Board's decisions will appear in the next issue of The Trusted Professional.